Air Malta CEO Clifford Chetcuti has taken a 70 per cent pay cut and has given up all perks in line with the airline’s drastic cost cutting measures aimed at survival after the COVID-19 outbreak.

The former pilot's pay has not been disclosed but aviation sources put the figure at well over €240,000.

Economy Minister Silvio Schembri made the announcement on Thursday in the wake of the national carrier's plan to lay off 108 pilots and 139 cabin crew. A further 145 cabin crew who are on a fixed-term contract have already been notified that their employment will not be extended following the expiry of its current term. 

Addressing a news conference outlining the government's economic aid  packages, the minister criticised “attacks” on Air Malta’s CEO, who was appointed to the top job in 2018. 

Air Malta CEO and former pilot Cliff Chetcuti, left, with ex-tourism minster Konrad Mizzi, and the former Air Malta CEO, Joseph Galea. Photo: Air Malta/Facebook

Schembri's comments were made in the wake of criticism by the pilots that members of senior management were not taking the same drastic wage cuts as the rest of the company.

Under this cost cutting exercise all employees across the board who are currently idle due to the sharp drop in flights, were offered a monthly salary of €1,200.

While the engineers accepted the proposal, and the ground handling employees will take a vote in the coming days, both the pilots and the cabin crew have refused the offer outright.

Schembri said the company had pleaded for the cabin crew and pilot unions to give their members the opportunity to vote.  However, they refused four times to hold the ballot. 

All commercial flights have been grounded in Malta for almost three weeks. Photo: Matthew Mirabelli

Schembri appealed to these unions to “genuinely”  understand the seriousness of the situation. 

“Air Malta has been facing challenges even before the outbreak of the pandemic, and decisions to shed employees are taken with a heavy heart,” he said.

On the possibility of bailing out the company through State aid, Schembri said such a measure could not be used simply to keep the existing workforce pocketing the same salaries as before.

“Let us not forget we are talking about taxpayers’ money which we have to spend wisely,” he said.